Dairy Crest is the latest processor to announce a milk price increase, upping prices by 1p/litre from 1 November.
The company will pay farmers on Davidstow cheese contracts 33.25p/litre and those on standard liquid contracts 32.5p/litre.
The company has also increased its organic milk price by 1p/litre.
“The increases we are announcing today show Dairy Crest’s commitment to pay fair, market-related milk prices to our farmers,” said group procurement director Mike Sheldon. “We expect to recover the increased raw milk costs from our customers.”
The company launched a formula contract option in March this year, with the October price set at 32.082p/litre.
The contract calculates a monthly milk price via a formula tracking five key costs: bulk cream, retail liquid milk (four pints), concentrates, fertiliser and red diesel.